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JPMorgan Doubtful of Rumored Exxon Mobil Pursuit of Anadarko

After rumors circulated yesterday suggesting that Exxon Mobil (XOM) could seek to buy energy exploration and production company Anadarko (APC), JPMorgan said it believes that such a deal is unlikely to occur.

NEW YORK (TheStreet) -- After rumors circulated yesterday suggesting that Exxon Mobil (XOM) could seek to buy energy exploration and production company Anadarko (APC), JPMorgan said it believes that such a deal is unlikely to occur.

WHAT'S NEW: In March, Anadarko estimated that its net asset value was over $140 per share, JPMorgan analyst Joseph Allman stated in a note to investors earlier today. Consequently, the company is likely to demand a purchase price significantly above that level in any takeover deal, Allman wrote. However, since the company's stock closed at only $108 on Wednesday, a potential buyer would have difficulty justifying a purchase price significantly above $140 per share, the analyst contended. Moreover, few exploration and production companies have been acquired in recent years, added Allman, who has an Overweight rating on Anadarko's stock.

PRICE ACTION: In early trading, Anadarko was up 0.5% to $108.90. Anadarko shares had advanced more than 4% yesterday.

Reporting by Larry Ramer.

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